Are GS and Bear Stearns good stocks to own at P/E= 9'ish

I wanted to know whether people think these stocks are going to be bad in the short term, medium term, and what price is a good one for buying either GS or Bear Stears.

Is the HF crisis at Bear Stearns going to affect its profitability, or just reputation (or both).

Is GS, at like 8.9 PE a decent buy at 180 USD.

Thanks in advance for any responses.

7 Comments
 

that is a very broad question. you tell me - what valuation methods do you think are appropriate for those stocks? what premium should gs trade at compared to bsc?

why not go long gs, and short bsc?

 

The HF fallout shouldn't really hurt Bear's profits...any damnage should be confined to rep. In the short run, with the markets like they are now, it seems like holding bank stocks is really uncertain unless you think they're pretty much done dropping (definitely doesn't seem to be public sentiment). I'd say if you want to own these...wait a bit longer...but then, what do I actually know right?

 

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